PARIS (Reuters) – The New York Stock Exchange was looking for direction at the open on Wednesday, with investors hesitant ahead of Nvidia’s earnings release after the close.
In early trading, the Dow Jones index lost 12.96 points, or 0.03%, to 41,237.54 points, and the broader Standard & Poor’s 500 fell 0.03% to 5,624.14 points. The Nasdaq Composite lost 0.09%, or 16.02 points, to 17,738.802.
Analysts expect Nvidia to more than double its revenues over the year to $28.7 billion, and are hoping for an increase in its financial targets as the group publishes its third-quarter results after the close of US markets.
Options markets suggest that traders are expecting a 9.8% move in the stock price after its results, implying a movement of more than $300 billion in the capitalization of the group, which dominates and largely contributes to the success of the artificial intelligence theme among investors.
The group’s importance is such that Deutsche Bank strategists estimate the impact of the results to be comparable to that of a surprise on a US inflation figure or a monthly US employment report.
The publication of PCE inflation on Friday, a key indicator of American price dynamics and essential to the trajectory of rates, also encourages investors to be cautious.
In terms of values, Nvidia opens stable ahead of its results.
(Written by Corentin Chappron, edited by Kate Entringer)
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